Key facts
- Brazil is preparing retaliatory measures against new U.S. tariffs.
- Potential Brazilian responses include non-tariff actions like curbs on dividend remittances and suspension of patent protections.
- The U.S. tariffs have become a contentious issue in Brazil's presidential election.
- Candidates are blaming each other for the trade dispute.
- Brazil will also revive a WTO dispute concerning electronic transmissions.
Brazil's government is preparing a robust response to new tariffs imposed by the Trump administration, with potential retaliatory measures including non-tariff actions affecting the audiovisual sector and pharmaceutical and agricultural patents. These measures are being considered under Brazil's reciprocity law, a move President Luiz Inácio Lula da Silva has indicated would be a "tough response." Officials view these options as preferable to import tariffs, which could disrupt supply chains or increase domestic inflation. U.S. officials have warned of potential reviews of their actions if Brazil retaliates, raising concerns among Brazilian exporters. The trade dispute has also become a significant issue in Brazil's presidential election, with candidates trading blame. Senator Flavio Bolsonaro has criticized President Lula's administration for its handling of the trade negotiations, while Lula has accused the Bolsonaro family of orchestrating actions against Brazil for electoral purposes. Brazil also plans to revive a World Trade Organization dispute over customs duties for electronic transmissions.